Wall pitches Saskatchewan over Alberta for royalty stability

Premier says provincial government has no plans to review the rates it charges oil companies.

WEYBURN, Sask. — Saskatchewan Premier Brad Wall is using the NDP’s pending royalty review in Alberta to pitch his province to the oil industry.

In a speech to an industry audience, Wall promised his government has no plans to review the rates it charges oil companies in Saskatchewan.

With oil prices currently hovering around US$60 a barrel, the industry doesn’t need any instability, Wall said.

“We like where royalties are at,” he told reporters covering his address at the Saskatchewan Oil and Gas Recognition Awards. “We want to tell the industry, whatever may be happening in the rest of the country, they can expect royalty stability here.”

Wall noted Saskatchewan benefited through increased investment the last time Alberta reviewed its royalties.

In 2007, a panel report titled Our Fair Share recommended that Alberta increase its royalty take. Industry players were livid when former Progressive Conservative premier Ed Stelmach accepted some of the recommendations. However, after the recession hit, many of the royalty changes were essentially undone in 2009.

The News Democrats under Rachel Notley won last month’s Alberta election on a platform that promised to review royalty rates again.

Notley, whose party won 54 of 87 seats, has pledged to work with the industry, and executives have largely adopted a wait-and-see approach in their public responses.

Wall, whose right-leaning party is opposed by the NDP in the legislature, said Saskatchewan will use the promised review in Alberta to tout investment opportunities in his province.

“We are going to be in Alberta highlighting what we think is the Saskatchewan advantage,” he said, borrowing a phrase often used by Alberta’s PCs.

While Saskatchewan may not review oil royalties any time soon, the same can’t be said for one of the province’s other major resources.

The government announced in its budget this year that it will review potash royalty structures, while spreading tax deductions for capital spending in that industry over a longer period of time.

© 2015 The Canadian Press

1 Comment » for Wall pitches Saskatchewan over Alberta for royalty stability
  1. Randy says:

    Good for Saskatchewan. It’s amazing how Socialist elites like Mulcair love to lap up luxury provided to them thru the resource sector yet will suck an blow at the same time. This country will be doomed if we bring Mulcair and his anti business model or Trudeau and his tax everything model in as government. Either way both these men represent not just huge tax increases to the middle class they represent the corrupt mafia industry driving their parties. Funny how both are from Quebec and both represent the criminal element working in the back ground of Canadian politics. It’s also funny how the Liberals are the one government that outright stole from Canadians (ADSCAM)and the NDP are alleged to have stolen 4 million from Canadians for inappropriate spending. This is moneys that went directly into party coffers for partisan activity and the corruption of democracy. Up next millions to be spent by government unions to support the mafia style corruption politics of the left. Both Mulcair and Trudeau support unions and their agenda of bully tactics to subvert democratic rights to voting in secret. Is it also on their agenda to have bully unions at the poles looking over our shoulder during the next election to assure we vote to their liking? (Socialist Agenda)

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